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Tuesday, July 10, 2007

The Federal Reserve and Income Tax Conspiracy Theory

I read an interesting conspiracy theory on the Internet. Actually, there's no single site that tells the whole story. I pieced it together from a bunch of different bits.

During the 19th century, the international banks in Europe were really threatened by the United States. At this time, the banks in Europe effectively controlled all European governments. All countries in Europe had a corrupt monetary system and taxation system. With a fair taxation system and monetary system, all the talented people in the world would flock to the United States. The power of the USA would grow and their power would decrease.

There was another problem that concerned the large international banks. Large pools of private capital were forming, outside the control of the international banks. If someone asks an international bank for capital to start a business, the terms of the financing make the bank the effective owner of the business. With private capital pools, people could found businesses that the international banks could not control. By fixing interest rates at an artificially low level, these private capital pools would dry up. With market-determined interest rates, it's more attractive to finance a business with equity. Financing via equity means reinvested earnings or selling equity. With artificially low interest rates, it's more attractive to finance a business with debt. This even lets the international banks have a veto over which businesses succeed, because they can give cheap loans to the monopoly they support. Nowadays, selling equity is almost the same as debt financing, because the people who buy the equity borrowed the money from an international bank.

Artificially low interest rates ensure that all economic activity comes under the international banks' control. With high debt levels, artificially created boom/bust cycles allow banks to confiscate assets during recessions. In order to successfully build a business with equity financing, you have to be sufficiently efficient to overcome the advantage that large businesses get from debt financing and their size.

That's what's dangerous about the Internet. The Internet allows a new business to be founded with very little capital. The Internet makes it very easy to grow a business with equity financing. The main cost of an Internet business is software, which is created by engineers and not by bankers. A top-flight programmer can produce something that 1000 average or good programmers could not. That's why it's so important to destroy network neutrality. Individuals can't be allowed to effectively start their own businesses with equity financing.

The European banks set out to destroy the USA. Apparently, only a handful of spies were needed to completely corrupt the US government and economy. They didn't come to the USA covertly as spies. They came here openly as traveling businessmen and consultants. They explained the wonders of Europe's monetary and taxation system. They were generously helping the leaders in the USA set up a similar system here.

There was one key victory that the international bankers won before 1913. This was the Supreme Court ruling that said that corporations had the same rights as people. Corporations could own property and enforce contracts. Corporate ownership is anonymous. Anonymous corporate ownership is power without responsibility or accountability. Under current SEC rules, an ownership stake over 5% must be declared. However, a group of 30 people acting as a cartel could buy 2% each. They would be able to control the corporation without publicly declaring their ownership.

This Supreme Court ruling was the effect of decades of lobbying. Many politicians and judges were bribed. They were convinced that corporations were good. The never was a law passed that said "corporations have the same rights as people". It was a Supreme Court decision. It was a decision the original authors of the Constitution would not have approved.

Many large US banks were funded by the international European banks. Corporate ownership is anonymous. Anonymous ownership meant foreigners could control US banks. Through the banks, they were able to control everything else. They only needed to buy up or infiltrate a handful of newspapers to make sure that their misdeeds went unreported.

Corruption of newspapers and television news is necessary to allow the structural defects in the economic system to go unreported and unresolved. This means that a lot of other huge abuses are necessarily ignored. Newspapers and television news had to be neutered of all their investigative journalism reporting capability. This prevents them from exposing this huge structural flaw in the economy. It also means they can't report other abuses.

Don't you consider it suspicious that newspapers and television don't report The Compound Interest Paradox and The Discounted Cashflow Paradox? Isn't it very suspicious these topics are never mentioned in schools? These are two very simple ideas. If I was running a major newspaper or television station, I'd be complaining about these two topics as often as possible.

There are occasional times when newspapers will do a good job of critically covering an issue. However, it almost always is something superficial compared to the other abuses that occur. For example, some people say that JFK was killed for standing up to the international banking cartel and the Federal Reserve. The investigations following the assassination focused on "How he was killed?" People never ask "Why was he killed?" With Nixon as President, newspapers did a good job of exposing a scandal and holding someone accountable. This distracted all attention from the JFK assassination. See, the government is incapable of covering up secrets! Was the Watergate scandal just a subterfuge to make people think the government couldn't keep secrets effectively? Was it a subterfuge to make people think that newspapers and television news hadn't totally betrayed them?

The Federal Reserve was created to corrupt the monetary system in the US. The easiest way to destroy a country is devaluing its money. Trade surpluses were converted into deficits, and gold left the US treasury for other countries. The income tax was needed to discourage productive work and drain the productive value of the economy. The income tax was needed to force people to use worthless dollars. The income tax was needed to convert all US citizens into slaves instead of free people.

In the election of 1912, there were 3 major candidates: Roosevelt, Taft, and Wilson. Each of them were the advocates of a banking reform bill. All three versions of the bill had practically the same language. The international bankers were financing all three candidates! Wilson won the election and the Federal Reserve was created. It was passed just before Christmas when a lot of members of Congress had already left for vacation.

The Federal Reserve was an easy sell to the big US banks. By fixing prices, they would be able to sell all the loans they wanted. They knew in advance when interest rates would be lowered or raised, enabling them to profit from the boom/bust cycles. The small banks didn't have inside information. Many small banks were wiped out.

The income tax was an easy sell to politicians. It would enable them to greatly increase the size of the government and their own power. The welfare system was created to compensate for the damage caused by the Federal Reserve and the income tax.

In 1913, the international banking cartel won its final victory over the United States. The Federal Reserve Act and the 16th amendment are the functional equivalent of a surrender treaty. The Federal Reserve Act surrendered control of the monetary system to the international banking cartel and guaranteed the eventual abandonment of the gold standard. The Federal Reserve's debt-based money guaranteed the enslavement of every American under a crushing debt burden. The Federal Reserve guaranteed the ability of the international banking cartel to confiscate wealth through artificially created boom/bust cycles. The income tax converted all US citizens into government slaves, forcing them to turn over 40-50% or more of their wealth via income taxes. The government is now able to steal an additional 5-45% through regulations. If you add up the cost of taxation and regulation, the average person has an effective taxation rate of 50-90%.

Every country everywhere has a corrupt financial system. Every country has a central bank monopoly that fixes interest rates. Every country has an income tax or equivalent tax. (The VAT system used in Europe is logically equivalent to an income tax.) An individual can't say "I'll move to a country with a fair monetary and taxation system.", because there aren't any. The USA was a temporary anomaly. For a brief time, it had a fair monetary system and taxation system.

The USA still is the world's most powerful country. Its rules for commerce are still more favorable than other countries, despite the huge handicap of an unfair monetary system and an unfair taxation system. You would think that at some point, somewhere, a country would return to a fair financial and taxation system. Such a country would be incredibly prosperous. However, it would be promptly invaded or infiltrated by the existing countries. Is there any solution?

1 comment:

John Wallace said...


In 1726, Jonathan Swift wrote “Gulliver’s Travels” which was a story of an English surgeon, named Lemuel Gulliver, who takes to the high seas when his business in England fails. Gulliver's multiple adventures begin in a place called Lilliput when he awakens on a beach after a shipwreck only to find himself immobilized and tied down by thousands of tiny threads woven around him by the very tiny Lilliputians. If Gulliver had been awake, he could easily have snapped these threads individually or in small numbers and the Lilliputians would never have succeeded in taking control of Gulliver and making him their prisoner. Those tiny threads were multiplied and woven hundreds and thousands of times by the Lilliputians while Gulliver was sleeping. By the time Gulliver finally did wake up, it was too late. He was totally incapacitated and unable to do anything. He was at the mercy of his new masters, the Lilliputians.

Just like Gulliver, the American people appear to be either asleep or unaware of the growing danger of being incapacitated by America’s own version of the Lilliputians, who are nothing more than well financed traitors to this great country. Do not underestimate the danger. There is a network of prominent individuals and organizations, led by the Council on Foreign Relations (CFR), who are very much like the Lilliputians in Gulliver’s Travels. Pushing the globalist agenda of their masters, these individuals and organizations are extremely well financed by large international banking and corporate foundations and they currently pose more of a danger to America’s freedoms, liberties and sovereignty than any foreign enemy.

After World War II, this same network of individuals and organizations were instrumental in the founding of the United Nations, which was specifically designed to be used as an instrument in the creation of the New World Order. The American delegation to the San Francisco meeting that drafted the charter of the United Nations in 1949 included many CFR members such as Nelson Rockefeller, John Foster Dulles, John Mc Cloy and the Secretary-General of the conference, Alger Hiss, who was later arrested as a communist spy for Russia, as were several other prominent CFR members.

This growing network of individuals and non-governmental organizations (NGO’s) have been instrumental in using our country’s membership in the United Nations and other international organizations to circumvent the US Constitution by gradually expanding the role and power of these international organizations in an effort to diminish our own sovereignty. They advocate giving a wide variety of international organizations ever increasing powers at the expense of the sovereignty of individual nations. They also advocate for the consolidation of international finances and money creating powers into the hands of a few private international banks. All of this is proposed for the benefit of all mankind, of course, and they always push for global organizations to solve global issues.

The individual “threads of change” that America’s own traitorous Lilliputians use against their fellow Americans are varied and if examined individually would not appear to pose to any big danger to our way of life in America. But added together, these individual “threads of change” are placing American’s freedoms, liberties and sovereignty at risk. This is one reason that many Americans today feel that the American way of life is being attacked and challenged every single day from a hundred different directions and they are right.

Here are a few of the “threads of change” currently being woven around America’s freedoms, liberties and sovereignty by these traitorous enemies within out own country:

a. Millions of dollars in “legal” special interest bribes to our politicians every year;
b. 12-20 million illegal aliens allowed to remain in the country costing the American taxpayers billions of dollars;
c. Election fraud through the use of new electronic voting machines without paper trails;
d. Downplaying of the importance of English as our official language;
e. Destroying our manufacturing jobs through unfair trade agreements like NAFTA that benefit corporations over American workers;
f. Growing influence of private, non-governmental organizations (NGO’s) like the Council on Foreign Relations and the Trilateral Commission on our government’s political leaders and policies;
g. Failed social engineering programs in housing, education, finance, employment, etc.
h. Expansion of underfunded entitlement programs;
i. Ever increasing taxation of the people at every level of government;
j. Frequent attacks on the Second Amendment rights of American citizens from every level of government;
k. Creation of one financial crises after another that are designed to allow the federal government and the Federal Reserve to assume a larger role in controlling the economy even though the federal government’s own actions, policies and legislation caused the crises in the first place;
l. Federal government’s use of the threat of terrorism as an excuse to become more intrusive into our everyday lives and thereby place more and more limitations on our personal freedoms and liberties;
m. Increasing use of prescription drugs to alter the behavior of more and more Americans. For example: At the present time, there are 6 million children under the age of 18 in the USA who have been prescribed mind-altering psychotropic drugs like Ritalin;
n. Deliberate “dumbing down” of the American education system through revised teaching methods and the re-writing of textbooks to include politically correct and globalist agendas;
o. Deliberate and frequent attacks on mainstream organized religions (particularly Jewish and Christian);
p. Surrender of our government’s constitutional power to create money to a group of private international bankers (the Federal Reserve) who answer to no one and who are slowly and deliberately bankrupting this country through the use of “fiat’ money;
q. Manipulated and biased news stories from the mainstream media that are too often designed to support the political agendas of their owners, international bankers and corporations, special interest groups and even their favorite political candidates.
r. Politicization and manipulation of science by special interest groups for political gain through the use of legal and/or economic pressure to influence the findings of scientific research and then using their own media outlets to control the way it is disseminated, reported or interpreted. Global Warming is a prime example of this process;
s. The endless cycle of war that has occurred since America became a member of the United Nations. The UN charter has allowed our politicians to send American troops into combat on foreign soil without formal Declarations of War;
t. The step by step surrender of our nation’s sovereignty to an ever expanding and un-elected United Nations bureaucracy in order to promote the need for a “New World Order” and “One World Government” under the guise of fighting common global threats against all the people of the earth including the pollution of the oceans, the aids epidemic, third world poverty, terrorism and global warming;

Unfortunately, the previous list is only a small fraction of the “threads of change” that are being woven around and through American society today by America’s enemy within. Although this traitorous network of individuals and organizations is relatively small, they have an unlimited amount of money at their disposal to use to pursue their globalist agenda.

They advance their agenda by:

1. Using their own group members currently in high government positions,
2. Using individuals and research groups financed by their own non-profit foundations, and
3. Using the media companies they own to bring pressure on government officials from several different directions at once.

The long term plan of America’s Lilliputians has been to use a small “step by step” process, or “thread by thread” change process that is designed to slowly but steadily advance their goals while at the same time going virtually unnoticed by the majority of Americans. Unfortunately, their success in implementing their goals will gradually convert the USA from a sovereign nation into a subservient position in the new world order run by non-elected, appointed bureaucrats selected by the international bankers.

The sheer numbers of these individual globalist “threads of change” that threaten America’s freedoms, liberties and sovereignty have been increasing dramatically in the last few decades. As these “threads of change” are very carefully woven deeper and deeper into the fabric of American society by the enemy within and are combined with other “threads of change,” they are steadily becoming stronger and more difficult to break.

If America fails to awaken soon to the danger that these traitorous American Lilliputians pose to this country, we too, like Lemuel Gulliver, will find ourselves totally incapacitated, without individual freedoms and liberties and unable to do anything about it. The grip of these international criminals must be broken and the threats against our liberties, freedoms and our nation’s sovereignty must be eliminated before it is too late.

If the plan of the international bankers is ultimately successful, the US constitution will gradually be superseded by international laws, rules, regulations and legal decisions of the International World Court.

If we do nothing and the traitorous Lilliputian international bankers are successful in fully implementing their globalist agenda for America, we will all be destined to be poor, overtaxed, unarmed, bound by the chains and shackles of servitude and at the mercy of our new masters.

By John W. Wallace

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